Final Results

Lo-Q PLC
23 April 2007

                       Lo-Q PLC ('Lo-Q' or 'the Company')

               FINAL RESULTS FOR THE YEAR ENDED 31 DECEMBER 2006


HIGHLIGHTS OF THE YEAR
     
•    Strong revenue growth with sales of £2.0m (15 months ended Dec 2005: £1.6m)

•    Year ended with operating profit £0.34m (2005: loss £0.1m)

•    Secured a 3 year contract with Dollywood and a three year agreement for
     the use of the Lo-Q Guest Services System in 7 Six Flags park

•    Secured Radio Frequency Identification ('RFID') agreement with Proximities, 
     Inc. of Florida, USA, to accelerate the development of its cyber queuing 
     product line. Proximities develops, markets and supports a suite of secure 
     RFID business solutions for the leisure and entertainment


Contacts:

Jeff McManus, Lo-Q Plc - 01491 577 210
Romil Patel / Jerry Keen, Corporate Synergy Plc - 0207 448 4400


CHAIRMAN'S STATEMENT

Before 2006 started, we knew that we were facing the most important year of the
Company's operation. The prime objective that we set for the year was to
generate an operating profit for the twelve months of 2006 and to retain
sufficient cash from our operations so that there would be adequate funding at
the end of the year to take us through the winter and into the spring with some
degree of financial comfort. The Board charged the operating team, led by Steve
Drake, to more than meet these objectives and encouraged maximum performance by
implementing an aggressive bonus plan. I am pleased to report that an excellent
team performance led to a commendable level of sales with an outstanding
performance in the Six Flags Georgia Park in Atlanta. The year ended with an
operating profit of £341,729 (2005: £139,423 loss) with a £643,967 net cash
balance.

The performance in the Six Flags parks was at such a high level that the chief
executive officer of Six Flags announced to the New York stock exchange in the
late autumn that he would be asking Lo-Q to sell Q-bots in two further parks and
he also wanted our operations team to manage and run the sales of Q-bots in all
of the Six Flags park in which we were present. This was a great complement to
Steve's team, and will require us to employ approximately 350 seasonal staff (24
seasonal staff in 2005).


Patent Settlement

The operating profit was, however, offset by an exceptional item during the
year. On 14 December 2006, the Company announced that it has concluded
negotiations with Palmtop Productions Inc. ('Palmtop'), the owners of a theme
park line management patent based on hand-held personal organisers. Whilst it
was alleged that Lo-Q has been contravening their patent, the Company's lawyers
and specialist patent attorneys believe this not to be the case.  As a result,
it had been the view of the Board that this claim could be successfully
defended.  After weighing the balance of risk present in any USA patent law
case, the Company made the decision to pursue an out of court agreement to
settle the case expediently.  The Company recognises that this has the advantage
of releasing a significant amount of management time and avoids the potential
costs if any defence case were to become protracted.

The cost involved in this legal settlement is taken as an extraordinary item in
the 2006 accounts and has led to an after tax loss of £269,208. The Board and I
can confirm that the Company has not been notified of any similar legal action.


Theme Park Contracts

The trial at the Dollywood Park in Tennessee progressed well with the new
software for booking the prime shows that are continuously run in the park,
helping park guests throughout the last three months of the year. This park's
management were pleased with the system and saw the guests' reaction as positive
confirmation that a full system, including reservations for coaster and other
attractions, would benefit the park. A three-year contract, with the provision
of a further three-year extension on expiration, was signed by both parties at
the end of February. Our Company is very pleased with this commitment and looks
forward to discussing with other members of the Silver Dollar theme park chain,
which owns Dollywood Park, how the system could give guests in those parks a
more enjoyable day.


Research and Development

Our team started work on a new and improved version of our software at the
beginning of the year and in the late summer we were able to trial the new
system, VQ 2020, and, following the success of this trial, we are now installing
this system in new parks. Users will find the system to be more flexible and the
larger Q-bot screen will enable much better communication with the central
system. We expect to develop extended systems to add to the ride/show
reservation backbone. A major consideration for the new Six Flags senior
management, in committing to our system in their new contract, was that through
joint communication in forecasting theme parks future methods of operation, and
through our ability to harness new technology, we are charged by them in keeping
our system as the world leader in the line management/guest communication field.
We believe that this will lead to us installing our system and renting Q-bots in
more Six Flags parks in the future.

The Company has also signed an agreement with Proximities, Inc. of Florida, USA
('Proximities'), that will accelerate the Company's development of its virtual
queuing product line. Under this RFID Agreement, Lo-Q and Proximities will work
together to add RFID functionality to Lo-Q's product offering, and Lo-Q's
queuing software will be integrated with Proximities product offering.

The relationship established with Proximities will allow Lo-Q to expand its
product offerings into water parks and other markets where a less sophisticated
or lower cost queuing device is required.  It also supports Lo-Q's vision of
having every guest in the park on the system and not waiting in line for the
prime attractions.


AGM

The AGM of the Company will be held at its offices at The Smith Centre,
Fairmile, Henley-On-Thames, Oxfordshire at 11:00 a.m. on 29 May 2007.

To sum up the last year, I believe that Lo-Q has come of age that we have now
finished the building of the structural foundations of our Company and this year
will see the first floor of the new building arising through the commitment of
our staff. I wish to thank every one of them for the hard work and expertise
that has been contributed in this important year.


Jeff McManus
17 April 2007


LO-Q PLC
CONSOLIDATED INCOME STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2006


                                                        12 months     15 months
                                                         ended 31      ended 31
                                                    December 2006 December 2005
                                                                     (restated)
                                                                £             £

Revenue                                                 1,978,554     1,596,482

Cost of sales                                            (432,336)     (273,270)
                                                       -----------   -----------
GROSS PROFIT                                            1,546,218     1,323,212

Other operating income                                      4,264         2,139
Administrative expenses                                (1,208,753)   (1,464,774)
                                                       -----------   -----------
OPERATING PROFIT/(LOSS)                                   341,729      (139,423)

Other non-operating income                                      -        75,671
Exceptional Items - Other non operating
expenses                                                 (663,337)            -
                                                       -----------   -----------
LOSS BEFORE TAX                                          (321,608)      (63,752)

Tax                                                        52,400        29,565
                                                       -----------   -----------
LOSS FOR THE YEAR/PERIOD                                 (269,208)      (34,187)
                                                       ===========   ===========

EARNINGS PER SHARE
Basic for loss for the year/period                          (1.83)        (0.24)
Basic for profit before exceptional costs                    2.68         (0.24)
Diluted for loss for the year/period                        (1.73)        (0.23)


All of the activities of the group are classed as continuing.

                                                                                                                        
                                                                      
CONSOLIDATED BALANCE SHEET
AS AT 31 DECEMBER 2006                                                (restated)
                                                             2006          2005
                                                                £             £
ASSETS
  NON CURRENT ASSETS
    Property, plant and equipment                          15,010        18,304
                                                       -----------   -----------
                                                           15,010        18,304
                                                       -----------   -----------
  CURRENT ASSETS
    Inventories                                           195,226       208,124
    Trade and other receivables                           145,150        54,006
    Prepayments                                            20,375        22,310
    Cash and cash equivalents                             643,967       637,429
                                                       -----------   -----------
                                                        1,004,718       921,869
                                                       -----------   -----------
  TOTAL ASSETS                                          1,019,728       940,173
                                                       ===========   ===========

EQUITY
  ISSUED CAPITAL AND RESERVES
    Issued share capital                                  147,658       143,478
    Share Premium account                               4,982,067     4,971,617
    Other Reserves                                         20,578        18,285
    Retained profits                                   (4,636,901)   (4,324,778)
                                                       -----------   -----------
  TOTAL EQUITY                                            513,402       808,602
                                                       -----------   -----------
CURRENT LIABILITIES
  Trade and other payables                                473,832       116,405
  Tax payables                                             32,494        15,166
                                                       -----------   -----------
                                                          506,326       131,571
                                                       -----------   -----------
TOTAL EQUITY AND LIABILITIES                            1,019,728       940,173
                                                       ===========   ===========


CONSOLIDATED CASH FLOW STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2006

                                                           2006          2005
                                                              £             £
CASH FLOWS FROM OPERATING ACTIVITIES
    Total operating Loss                               (321,608)      (63,752)

  ADJUSTMENTS TO RECONCILE TO LOSS FROM OPERATIONS
    Share based payment expense                           2,293         3,587
                                                     -----------   -----------
                                                       (319,315)      (60,165)

  NON-CASH ADJUSTMENTS
    Depreciation                                         17,427        38,545
    Unrealised gains on foreign currency exchange       (42,917)        7,273
                                                     -----------   -----------
  NON-CASH ADJUSTMENTS                                  (25,490)       45,818
                                                     -----------   -----------
  CASH FLOWS BEFORE CHANGES IN WORKING CAPITAL         (344,805)      (14,347)

  INCREASE IN WORKING CAPITAL
    Decrease/(Increase) in inventories                   12,898        (9,677)
    (Increase)/Decrease in trade and other              (68,024)      334,499
    receivables
    Decrease in prepayments                               1,935         9,699
    Increase in trade and other payables                357,427        20,735
    Increase in tax payable                              46,608        42,915
                                                     -----------   -----------
  INCREASE IN WORKING CAPITAL                           350,844       398,171
                                                     -----------   -----------
  CASH FLOWS FROM OPERATING ACTIVITIES                    6,039       383,824


CASH FLOWS FROM INVESTING ACTIVITIES
    Payments to acquire property, plant and             (14,132)       (5,692)
    equipment

CASH FLOWS FROM FINANCING ACTIVITIES
    Gross proceeds from issue of equity share            14,630             -
    capital
                                                     -----------   -----------
  NET CASH FLOWS FROM FINANCING ACTIVITIES                  498        (5,692)
                                                     -----------   -----------
NET INCREASE IN CASH AND CASH EQUIVALENTS                 6,537       378,132

    Cash and cash equivalents as at 1 January 2006      637,429       259,297
                                                     -----------   -----------
CASH AND CASH EQUIVALENTS AS AT 31 DECEMBER 2006        643,967       637,429
                                                     ===========   ===========



NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS



REVENUE
                                                    12 months     15 months
                                                                  (restated)
                                                         2006          2005
                                                            £             £

Q-Bot rental income                                 1,977,929     1,596,482
Other income                                              625             -
                                                  -----------   -----------
                                                    1,978,554     1,596,482
                                                  ===========   ===========

The geographical analysis of turnover is such that all rental income arises
through sales generated in America.


EXCEPTIONAL ITEMS
                                                    12 months       15 months
                                                                    (restated)
                                                         2006            2005
                                                            £               £

Litigation cost                                      (459,512)              -
Professional fees on litigation                      (203,825)              -
                                                   -----------   -------------
                                                     (663,337)              -
                                                   ===========   =============

It was alleged that Lo-Q had been contravening a patent owned by Palmtop
Productions Inc. ('Palmtop'). The Company's lawyers and specialist patent
attorneys believe this is not to be the case.  As a result, it had been the view
of the Board that this claim could be successfully defended.  After weighing the
balance of risk present in any USA patent law case, the Company made the
decision to pursue an out of court agreement to settle the case expediently.
The Company recognises that this has the advantage of releasing a significant
amount of management time and avoids the potential costs if any defence case
were to become protracted.




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